Buying a home can be stressful enough, but add in selling your current home simultaneously, and you may find yourself extra tense. That’s normal, and the experts at Merchant of Homes are here to help take the pressure off! Our team of agents is ready to help you navigate the ins and outs of buying and selling and make sure you’re as prepared as possible with these four tips:
Always Have A Backup Plan
Always be prepared for the unexpected! Not everything will go according to plan, and be sure to have a place to stay if your home sells before you’re able to purchase a new one. Doing so will significantly help reduce stress.
Consult Your Lender About A Bridge Loan
It’s no secret that buying a home while trying to sell can cause a financial strain. That’s where a bridge loan may be able to help. A bridge loan is a short-term loan, typically a year, used to “bridge” the gap between buying and selling a home, especially if you are buying before selling and cannot profit from the sale to put towards your new down payment.
A bridge loan provides homeowners the funds for a new home (most commonly for closing costs), and the homeowner will repay that loan, typically from the funds from their home sale. Work with your lender to understand the ins and outs of this loan and if it’s the best option for your needs.
Save, Save, Save!
Not everyone can afford two mortgages at once if they buy before selling. Lenders will see if you can afford to carry two mortgages at once, so you’ll need to qualify to pay on two properties.
As such, you should always save as much as possible before buying a new home and know if you can carry two mortgages.
Use Sale Contingencies With Caution
Some homeowners may consider using a sales contingency when selling their homes. This means that the sale of their home is contingent on finding another. Buyers may look at your home with a wary eye because they’ll believe that there’s little guarantee that the sale will go through.
Your agent at Merchant of Homes will help you understand the pros and cons of contingencies such as these.